The Central Bureau of Investigation (CBI) has registered a case against Jai Anmol Anil Ambani — the son of industrialist Anil Ambani — and Reliance Home Finance Ltd. (RHFL) in connection with an alleged ₹228 crore bank fraud involving Union Bank of India, officials confirmed on Tuesday.
Complaint Filed by Union Bank of India
The action follows a formal complaint filed by Union Bank of India (formerly Andhra Bank) against:
- Reliance Home Finance Ltd. (RHFL)
- Jai Anmol Anil Ambani, Director
- Ravindra Sharad Sudhakar, Director
According to the complaint, RHFL had secured credit limits of ₹450 crore from the bank’s SCF branch in Mumbai for business purposes.
The bank mandated strict financial discipline, including:
- Timely repayment of dues
- Payment of interest and charges
- Submission of security-related documents
- Routing all sale proceeds through the loan-linked bank account
RHFL, however, allegedly violated these terms and failed to repay instalments, leading to the account being classified as a Non-Performing Asset (NPA) on September 30, 2019.
Forensic Audit Points to Diversion of Funds
A forensic audit conducted by Grant Thornton for the period April 1, 2016 to June 30, 2019 revealed irregularities. The report indicated that:
- Borrowed funds were misapportioned
- Money was diverted for purposes other than those defined in the loan agreement
- Accounts were manipulated to disguise the movement of funds
The bank alleged that the accused, as erstwhile promoters and directors of the company, engaged in fraudulent misappropriation of funds, criminal breach of trust, and diversion/siphoning of loan money.
CBI Begins Probe
Following the complaint, CBI has registered a case and initiated investigation into:
- Financial transactions
- Fund routing patterns
- Possible involvement of other individuals and entities
Further summons and questioning are expected as part of the probe.
Industry Reaction
The case adds to the ongoing scrutiny of the corporate debt sector in India, where several companies have been investigated in recent years for suspected loan diversion and fraudulent accounting practices.
Reliance Home Finance Ltd. has not yet issued a formal public statement regarding the CBI action.